A Depressed Economy And A Silver Price Boom

Let’s take a look at silver priced in oil (WTI Crude), the Dow and US dollars:

Above, is silver priced in oil from 1983 to now. Price has moved in a large channel before it broke out at the end of 2014. This is really significant given the length of time involved.

However, more importantly there is a massive rounded bottom which is a good base for the coming higher prices. At the end of the bottoming pattern there appears to be a bullish wedge.

Price is still stuck in the wedge, but it could be close to breakout. A breakout at the top line of the giant cup is the sign of a depressed economy.

Just like for oil, the relationship between silver and the Dow is an important measure of economic conditions.

Here is a chart of silver priced in the Dow:

Currently silver priced in the Dow is close to all-time lows. Economic conditions is favourable to paper and debt-based assets. The bullish wedge is an indication that all this is about to change.

A breakout from the wedge will be the start of a massive wave of economic depressed conditions. The rally should be larger and more intense than the one from 2001 to 2011.

The most popular silver price (US dollar silver price) is currently completing a bottoming process similar to that of 2001 to 2003:

The current bottoming pattern looks like triangle that broke down. However, it actually is very bullish although it still needs to find a bottom. The bearish look of the triangle is creating that perfect panic that is needed before price can go higher.

The wise is buying right now while the fearful are selling. It only is important that price does not go lower than the low of 2015.

Hubert Moolman is a self-taught gold and silver analyst who writes a precious metals newsletter specializing in fractal chart analysis and monetary fundamentals (especially gold and silver). He has a background as a Chartered Accountant, and managed his own firm for 9 years. He also has a website that publishes educational articles on gold, silver and the dangers of fiat money.